Philippine taxation

In an attempt to generate a greater sense of accountability among tax officials conducting investigations and to ensure an effective feedback mechanism for taxpayers, two new tax issuances were recently released -- Revenue Memorandum Order Nos. 54-2016 and 61-2016.

With a month to go before 2016 ends, companies are now processing their payroll annualization, estimating the final amount of tax for individual employees. For a citizen working abroad during the taxable year, one very important matter to consider is his residential status, because it will determine how much of his income, if any, is taxable.

The earliest set of rules governing the establishment and operation of a financing company in the Philippines -- Republic Act No. 5980, otherwise known as “The Financing Company Act” -- dates back to the ’70s. Since then, the law, including its rules and regulations, went through several amendments in a span of almost five decades.

In an attempt to generate a greater sense of accountability among tax officials conducting investigations and to ensure an effective feedback mechanism for taxpayers, two new tax issuances were recently released -- Revenue Memorandum Order Nos. 54-2016 and 61-2016.

The new lease accounting standard will fundamentally
change the accounting for lease transactions and is likely
to have significant business implications. Almost all leases
will be recognized on the balance sheet, with a right
of use asset and financial liability that recognize more
expenses in profit or loss during the earlier life of a lease.
This will have an associated impact on key accounting
metrics, and clear communication will be required to
explain to the impact of changes to stakeholders.